Here are the key numbers in the deal proposed by three tobacco giants

Three tobacco giants are proposing to pay close to $25 billion to provinces and territories and more than $4 billion to tens of thousands of Quebec smokers and their loved ones as part of a corporate restructuring process triggered by a long-running legal battle.

A proposed plan of arrangement was filed in an Ontario court Thursday after the companies — JTI-Macdonald Corp., Rothmans, Benson & Hedges and Imperial Tobacco Canada Ltd. — spent more than five years in negotiations with their creditors.

The companies sought creditor protection in Ontario in early 2019 after they lost an appeal in a landmark court battle in Quebec.

The Ontario court put all legal proceedings against the companies on hold as they tried to work out a deal with their creditors, which include the plaintiffs in two Quebec class-action lawsuits as well as provincial governments seeking to recover smoking-related health-care costs.

Under the proposed plan filed Thursday, provinces and territories would receive payments over time, with roughly $6 billion to be paid out when the deal is implemented.

The Quebec plaintiffs would file claims for compensation of up to $100,000 each.

The proposed plan also includes more than $2.5 billion for smokers in other provinces and territories who were diagnosed with lung cancer, throat cancer or chronic obstructive pulmonary disease between March 2015 and March 2019. They would be eligible for up to $60,000 each.

Bruce W. Johnston, one of the lawyers for the Quebec plaintiffs, said the proposal is “historic and unprecedented” because it allows for the compensation of smokers as well as governments.

“When we took this case, there had never been a single plaintiff who had received a single penny from a tobacco company,” he said Thursday.

“We took this case in 1998 and as a result of our case, not only will tens of thousands of victims be compensated by the tobacco industry in Canada, most of them in Quebec, but also governments are going to be sharing $24 billion.”

The plaintiffs have endured lengthy delays and now they can finally see that there’s “probably a light at the end of the tunnel and that they will receive compensation,” he said.

While many of the class-action members died before they could receive any money from the companies, their successors — and in some cases, their successors’ successors — will be eligible for compensation, he said.

The proposed deal would also see the companies pour more than $1 billion into a foundation to fight tobacco-related diseases. That amount includes $131 million taken from the money allocated to the Quebec plaintiffs.

The proposal must still go through several steps before it can be put into action, including a vote by creditors and approval by the court.

Negotiations between the companies and their creditors were confidential, so the class-action members couldn’t know how things were progressing and many didn’t understand why it was taking so long, Johnston said.

Several health-care groups argued the lack of transparency surrounding the talks would benefit the companies at the expense of other stakeholders.

As recently as last month, three groups — Action on Smoking & Health, Physicians for a Smoke-Free Canada and the Quebec Coalition for Tobacco Control — said recent court filings suggested the provinces had agreed to a process that would give the companies veto power over the final deal.

The groups have consistently urged the provinces to impose regulations and smoking-reduction measures as part of a deal with the companies.

Some organizations, including the Canadian Cancer Society, were also calling for a deal to involve the public disclosure of internal company documents.

Rob Cunningham, a lawyer for the Canadian Cancer Society, said the proposed deal is “the most significant proposed settlement in the world outside of the United States” in a case of its kind so far.

But unlike the global settlement reached with tobacco companies in the U.S. in the late 1990s, it doesn’t include policy measures aimed at reducing tobacco use or any public disclosure of documents, he said.

He said the cancer society, which has been named a social stakeholder in the case, will review the details of the roughly 1,400-page proposal and make submissions as part of the approval process.

The Quebec lawsuits involved smokers who took up the habit between 1950 and 1998 and fell ill or were addicted. Heirs of such smokers were also party to the suits.

Court filings from last year suggest hundreds of the class-action members have died since the creditor protection proceedings began.

This report by The Canadian Press was first published Oct. 17, 2024.

Netflix on Thursday reported that its subscriber growth slowed dramatically during the summer, a sign the huge gains from the video-streaming service’s crackdown on freeloading viewers is tapering off.

The 5.1 million subscribers that Netflix added during the July-September period represented a 42% decline from the total gained during the same time last year. Even so, the company’s revenue and profit rose at a faster pace than analysts had projected, according to FactSet Research.

Netflix ended September with 282.7 million worldwide subscribers — far more than any other streaming service.

The Los Gatos, California, company earned $2.36 billion, or $5.40 per share, a 41% increase from the same time last year. Revenue climbed 15% from a year ago to $9.82 billion. Netflix management predicted the company’s revenue will rise at the same 15% year-over-year pace during the October-December period, slightly than better than analysts have been expecting.

The strong financial performance in the past quarter coupled with the upbeat forecast eclipsed any worries about slowing subscriber growth. Netflix’s stock price surged nearly 4% in extended trading after the numbers came out, building upon a more than 40% increase in the company’s shares so far this year.

The past quarter’s subscriber gains were the lowest posted in any three-month period since the beginning of last year. That drop-off indicates Netflix is shifting to a new phase after reaping the benefits from a ban on the once-rampant practice of sharing account passwords that enabled an estimated 100 million people watch its popular service without paying for it.

The crackdown, triggered by a rare loss of subscribers coming out of the pandemic in 2022, helped Netflix add 57 million subscribers from June 2022 through this June — an average of more than 7 million per quarter, while many of its industry rivals have been struggling as households curbed their discretionary spending.

Netflix’s gains also were propelled by a low-priced version of its service that included commercials for the first time in its history. The company still is only getting a small fraction of its revenue from the 2-year-old advertising push, but Netflix is intensifying its focus on that segment of its business to help boost its profits.

In a letter to shareholder, Netflix reiterated previous cautionary notes about its expansion into advertising, though the low-priced option including commercials has become its fastest growing segment.

“We have much more work to do improving our offering for advertisers, which will be a priority over the next few years,” Netflix management wrote in the letter.

As part of its evolution, Netflix has been increasingly supplementing its lineup of scripted TV series and movies with live programming, such as a Labor Day spectacle featuring renowned glutton Joey Chestnut setting a world record for gorging on hot dogs in a showdown with his longtime nemesis Takeru Kobayashi.

Netflix will be trying to attract more viewer during the current quarter with a Nov. 15 fight pitting former heavyweight champion Mike Tyson against Jake Paul, a YouTube sensation turned boxer, and two National Football League games on Christmas Day.

The Canadian Press. All rights reserved.

REGINA – Saskatchewan’s provincial election is on Oct. 28. Here’s a look at some of the campaign promises made by the two major parties:

Saskatchewan Party

— Continue withholding federal carbon levy payments to Ottawa on natural gas until the end of 2025.

— Reduce personal income tax rates over four years; a family of four would save $3,400.

— Double the Active Families Benefit to $300 per child per year and the benefit for children with disabilities to $400 a year.

— Direct all school divisions to ban “biological boys” from girls’ change rooms in schools.

— Increase the First-Time Homebuyers Tax Credit to $15,000 from $10,000.

— Reintroduce the Home Renovation Tax Credit, allowing homeowners to claim up to $4,000 in renovation costs on their income taxes; seniors could claim up to $5,000.

— Extend coverage for insulin pumps and diabetes supplies to seniors and young adults

— Provide a 50 per cent refundable tax credit — up to $10,000 — to help cover the cost of a first fertility treatment.

— Hire 100 new municipal officers and 70 more officers with the Saskatchewan Marshals Service.

— Amend legislation to provide police with more authority to address intoxication, vandalism and disturbances on public property.

— Platform cost of $1.2 billion, with deficits in the first three years and a small surplus in 2027.

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NDP

— Pause the 15-cent-a-litre gas tax for six months, saving an average family about $350.

— Remove the provincial sales tax from children’s clothes and ready-to-eat grocery items like rotisserie chickens and granola bars.

— Pass legislation to limit how often and how much landlords can raise rent.

— Repeal the law that requires parental consent when children under 16 want to change their names or pronouns at school.

— Launch a provincewide school nutrition program.

— Build more schools and reduce classroom sizes.

— Hire 800 front-line health-care workers in areas most in need.

— Launch an accountability commission to investigate cost overruns for government projects.

— Scrap the marshals service.

— Hire 100 Mounties and expand detox services.

— Platform cost of $3.5 billion, with small deficits in the first three years and a small surplus in the fourth year.

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This report by The Canadian Press was first published Oct .17, 2024.

The Canadian Press. All rights reserved.